Contract law worksheet with answers

An offer with no stated time limit lapses:

1. ANever, unless revoked
2. BAfter a reasonable time
3. CAt midnight on the day it is made
4. DAfter exactly seven days

For commercial agreements, English courts presume that the parties:

1. AIntend to create legal relations
2. BIntend the agreement to be a gift
3. CDo not intend to create legal relations
4. DIntend only a moral obligation

Which statement about silence as acceptance is correct in general?

1. ASilence always counts as acceptance
2. BSilence usually does not count as acceptance
3. CSilence counts as acceptance if the offeror says so
4. DSilence counts as acceptance after 24 hours

Under the Law Reform (Frustrated Contracts) Act 1943, money paid before a frustrating event is generally:

1. ARecoverable, though the court may let the payee keep some for expenses
2. BPayable twice, as a penalty
3. CPaid into court for distribution
4. DLost, because the loss must lie where it falls once the contract is frustrated

A builder's job takes much longer and costs much more than planned because of labour shortages. Under Davis Contractors v Fareham UDC, the contract is:

1. AVoid, because the price was wrongly estimated
2. BFrustrated, because the costs rose unexpectedly and substantially
3. CAutomatically varied to a reasonable price
4. DNot frustrated, because it has only become more onerous

A former wife sues for maintenance her ex-husband promised, relying only on promissory estoppel because she gave no consideration. In Combe v Combe:

1. AShe succeeded, because the promise was made in writing
2. BShe succeeded, because she relied on the promise
3. CShe failed, because promissory estoppel is a shield, not a sword
4. DShe failed, because family agreements are never legally binding on either party

Specific performance is usually ordered when:

1. AThe claimant asks for it in any case
2. BThe defendant has no money
3. CThe contract involves personal services, such as employment or performance contracts
4. DDamages would be an inadequate remedy, for example for unique goods or land

A former spy publishes his memoirs in breach of his undertaking not to disclose official information. In AG v Blake, the House of Lords:

1. AHeld that no remedy was available
2. BAwarded punitive damages to the Crown
3. CAwarded only nominal damages
4. DOrdered him to account for his profits, in an exceptional case